Why can’t I get a loan?
When we work with clients, we often hear the question Why can’t I get a loan? after all, my company generates revenues, completes contracts, orders on time, I try to pay my obligations on time, and yet I cannot receive financing from the Bank?
” Tell me why, because I really do not understand, and in the Bank they told me that scoring, that the analyst did not agree.
Or you know it is a banking secret “In total, these three answers I hear from customers most often.
Trying to answer this question as simply and clearly as possible, in today’s article I will describe main factors that determine the decision to grant credit by the Bank. I would like to mention straight away that these factors are of major importance when applying for a loan unsecured by tangible property in a commercial bank.
Under this concept are known to everyone
Slogans BIK, BIG, KRD. etc. If you are in arrears with installments, no Bank will agree to grant a loan until the payment is due. Writing directly if the current installment of a company or private loan is due and unpaid, you can certainly forget about the new loan. The situation is the same at the moment of entry in the National Register of Debtors or Economic Information Bureau in the case of unpaid invoice from the supplier or subscription for a mobile phone.
Paying installments on time builds our scoring in BIK. Each payment after the deadline of even 1 day affects the quality of our history, and thus creditworthiness. The more often we pay after the deadline, the worse we are assessed by BIK. In addition, the length of lateness affects our scoring.
It cannot be clearly stated whether frequent lateness after 1-2 days will give worse scores than a one-time lateness over 30 days. However, it is accepted that lateness up to 30 days does not completely eliminate our chances for a loan or a loan. When downloading your own BIK report, it is important that our BIK status says clearly ” wages without delays” (more on how to read the BIK report I will write in the next article).
Credit inquiries – “door to door”
Today, virtually all of us have a bank account. We need him for many factors. As a place to store savings, payroll, settlements with contractors or simply not to keep money at home. That is why most of us thinking ” needs a loan ” first go to their bank. We think then:
” They know everything about me, they have extracts, they will give me money right away, I will do it once. ”
In the optimistic variant. We submit an application, receive a credit decision, accept the conditions, the bank creates funds, we withdraw money. Ideally, but can each of us count on the “optimistic variant”?
The reality varies. When our bank refuses to grant us a loan, embittered we start the journey from bank to bank from door to door, submitting each loan request at each visit. Each of the queries is recorded in our BIK.
We must remember that every bank sees previously submitted queries, although it does not know in which specific bank we asked for a loan, but it sees that we are looking for financing and we have already obtained it or for some reason we have been refused financing.
Why does the Bank refuse us because of inquiries?
Important information is the fact that BIK closely related to the credit decision is created by banks. They report at least once a month information about our payment reliability. If we have already submitted an inquiry to bank X, then bank Y does not know whether a credit obligation arose from this inquiry. For this reason, Banks limit credit risk by introducing a policy of limited number of queries. Each bank has its own internal policy regarding this aspect.
My dear, is this information transparent, can you write explicit? After all, the Bank’s door does not say Dear Borrower, if this is your 5th question this month, you have no reason to go in and you will not get a loan anyway. “In such cases, it is worth using the services of a professional credit broker Good Finance / corporate loans / who has knowledge whether it is worth applying for funding at a given bank in a given month.